American Skiing Company Reports 1st QTR Results

December 01, 1999

NEWRY, Maine, Dec. 1 /PRNewswire/ — American Skiing Company (NYSE: SKI)today announced results for its first fiscal quarter ended October 24, 1999.

The net loss available to common shareholders including certain non-recurring items for the first quarter of fiscal 2000 was $28.0 million, or$0.92 per diluted share, compared with a net loss of $20.3 million, or$0.67 per diluted share for the first fiscal quarter of 1999.

Net loss for the first quarter of fiscal 2000 includes the following non-recurring items: (i) an after-tax extraordinary loss resulting from therestructuring of the Company’s senior credit facility of $0.6 million, (ii)the cumulative effect of a change in accounting principle relating to start-upcosts at certain of the Company’s resorts and hotels of $0.7 million, net oftaxes, (iii) the write-off of certain deferred tax assets of $3.0 million, and(iv) an after-tax gain related to the sale of certain non-strategic assets inthe amount of $1.0 million. The net loss available to common shareholdersexcluding these non-recurring items was a loss of $24.6 million, or $0.81 perdiluted share.

Total revenues were $23.4 million for the first quarter of fiscal 2000,compared with $24.8 million for the previous year’s first quarter. Resortrevenue was $20.8 million for the quarter, compared with $20.3 million in thefirst quarter of fiscal 1999. Real estate revenue was $2.5 million, versus$4.5 million for the same period in fiscal 1999.

The Company’s total earnings from operations before interest, incometaxes, depreciation, and amortization (“EBITDA”), was a loss of $19.7 millionin the first fiscal quarter of 2000, compared with an EBITDA loss of$18.1 million in the same period in fiscal 1999. Resort EBITDA for thequarter was a loss of $19.0 million versus an EBITDA loss of $18.6 million forthe previous year’s first quarter. Real estate EBITDA was a loss of$0.7 million compared with a gain of $0.4 million in the first fiscal quarterof 1999.

Due to the seasonality of the ski industry, the Company typically postslosses related to resort operations during its first and fourth fiscalquarters.

“Our first quarter was dedicated to preparing the nation’s largest networkof alpine resorts for the 1999/2000 ski season,” stated Leslie B. Otten,Chairman and Chief Executive Officer of American Skiing Company. “Bolsteredby a significantly enhanced balance sheet, the first quarter of fiscal 2000has been an exciting period of important achievements toward our goal ofproviding the highest quality skiing and riding experience available in eachof our markets.

“In terms of planning, we recently won major approvals for development atThe Canyons, Heavenly and Killington, increasing the visibility of our long-term real estate development pipeline,” Otten continued. “In the near term,we are looking forward to the delivery of the Sundial Lodge and Grand SummitHotel at the Canyons during the second and third fiscal quarters. Theadditional bed base, dining venues and amenities afforded by these hotels willbe a perfect complement to the phenomenal on-mountain experience currentlyavailable at The Canyons.

“We are particularly excited with the initial results from theintroduction of the industry’s first personalized pre-purchased lift ticketproduct, the mEticket. This product is just one example of our focus oncustomer service and the benefits to our guests only available through ourmulti-resort network,” Otten concluded.

Headquartered in Newry, Maine, American Skiing Company, founded by LeslieB. Otten, is the largest operator of alpine ski, snowboard and golf resorts inthe United States, growing skier visits ten-fold over the last five years.Its resorts include Steamboat in Colorado; Killington, Mount Snow andSugarbush in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash BearPeak in New Hampshire; The Canyons in Utah; and Heavenly in California/Nevada.

Statements in this press release, other than statements of historicanformation, are forward-looking statements that are made pursuant to the safeharbor provisions of the Private Securities Litigation Reform Act of 1995.Such forward-looking statements are subject to certain risks and uncertaintiesthat could cause actual results to differ materially from those projected.Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of the date hereof. Such risks anduncertainties include, but are not limited to, general business and economicconditions; competitive factors in the ski and resort industry; and theweather. Investors are also directed to other risks discussed in documentsperiodically filed by the company with the Securities and Exchange Commission.